US pre-open: Stocks seen flat ahead of more earnings, Fed

US futures pointed to a muted open on Wall Street on Wednesday as investors awaited more earnings and a rate announcement from the Federal Reserve.

At 1040 BST, Dow Jones Industrial Average and S&P 500 futures were 0.1% firmer, while Nasdaq futures were flat.

Meanwhile, oil prices were up ahead of the Energy Information Administration's latest crude oil stocks data at 1530 BST. West Texas Intermediate was 0.8% higher at $48.29 a barrel and Brent crude was up 0.6% at $50.48.

David Madden, market analyst at CMC Markets, said: "The US central bank would like to continue down the path of hiking interest rates, but they don’t seem to be in a hurry to raise rates again. Traders are sceptical the Fed will hike rates again this year, but it may start to reduce the size of its balance sheet. The Fed has a history of warning the market well in advance of changes to their monetary policy, so tonight’s statement will be watched carefully."

ETX Capital analyst Neil Wilson said: "We could get some tweaks to how the FOMC views the recent lacklustre inflation data. This presents the only real chance of a surprise with a small chance that policymakers indicate they are losing patience and don’t see the weak inflation as transitory but more sustained. There might also be a hint about balance sheet reduction but again any firm announcement on roll-offs will wait until after Jackson Hole and the September meeting.”

The FOMC rate announcement is due at 1900 BST.

In currency markets, the dollar was up 0.1% versus the pound at 0.7682, 0.2% firmer against the euro at 0.8602 and flat versus the yen at 111.85.

On the corporate front, chip maker Advanced Micro Devices surged in pre-market trade after it released better-than-expected earnings late on Tuesday and lifted its guidance.

Telecom AT&T and Chipotle Mexican Grill were also likely to gain at the open after stronger-than-forecast earnings late on Tuesday, but biotech firm Amgen was set to go the other way despite topping estimates with its second-quarter results.

Earnings were due ahead of the bell from Coca-Cola, Ford, Hershey, Whirlpool and Anthem, along with Boeing and Northrop Grumman. Facebook will release its earnings after the close.

On the macroeconomic calendar, new homes sales are at 1500 BST.